During Ramadan, Jordan’s housing market faces a downturn due to rising construction costs and high interest rates. Buyers are hesitating to make purchases, leading to concern among industry experts about the future of the market. Optimism persists for a post-Ramadan recovery if developers adapt their strategies accordingly.
During Ramadan, Jordan’s housing market typically experiences a temporary downturn as buyers and investors tend to delay financial decisions. This year, however, the situation is exacerbated by escalating construction costs, which have further diminished demand. Industry experts articulate that addressing fundamental challenges is essential for the sector to regain its momentum after the Holy Month concludes.
Housing expert Mahmoud Salah emphasized the dual burden developers face this Ramadan, stating, “Real estate activity usually slows during the Holy Month, but this year, developers are also grappling with increasing material costs.” This predicament has strained profit margins for developers who are hesitant to elevate property prices, discouraging buyers who are already facing financial pressures.
Additionally, high interest rates have rendered home financing less accessible, particularly for middle-income families. As borrowing costs reach their highest in years, many prospective buyers are deferring their purchasing decisions in anticipation of improved economic conditions.
This sentiment has resonated with potential homeowners, such as Enad Qaisi, who expressed frustration, saying, “I have been saving for years to buy an apartment, but with rising prices and expensive loan rates, homeownership feels increasingly out of reach.” Similarly, newlywed Noor Emad highlighted her concerns over affordability in the current market, stressing the importance of timing when purchasing a home amid the rising interest rates.
Despite the current stagnation, there exists a cautious optimism among industry experts regarding a rebound post-Ramadan. However, the pace of recovery remains uncertain, prompting suggestions for developers to consider more flexible payment options or government-backed incentives to foster increased demand in this challenging climate.
In summary, the housing market in Jordan is currently facing significant challenges during Ramadan, compounded by rising construction costs and elevated interest rates. This has led to a decrease in demand as potential buyers are discouraged by financial barriers. While there is hope for a recovery following Ramadan, industry experts suggest that developers may need to adopt alternative strategies to stimulate market activity.
Original Source: jordantimes.com
